How to Use a Sales Promotion to Your Advantage

How to Use a Sales Promotion to Your Advantage

While it may be tempting to offer a sale promotion to lure new customers or get rid of overstock, it is important to keep a few things in mind before you get started. In some cases, using a sale to lure new customers can cross the line into unethical selling. To maintain credibility and build customer loyalty, you must first nurture existing customers. Then, use sales promotions to reward existing ones. Below are some tips on how to use a sales promotion to your advantage.

Marketing backup: Whether you use a pricing deal or cents-off offers to keep your customers interested, you must do something to generate demand. If your product doesn’t sell, it will eventually perish. Having a marketing backup will generate brand loyalty and growing demand for your product. Promotions can be as simple as a cent off a product or as sophisticated as a multi-step campaign to promote your business. The key to success is knowing your target customer and your team.

Sales promotion: Using multiple methods to increase the amount of a product, a discount, or a free sample, a sales promotion is an effective way to boost demand for a product. It can also target retailers, distributors, or other customers through non-repeating selling efforts. A variety of media is used to communicate about sales promotions. These include radio and television commercials, newspapers, magazines, billboards, and online advertising.

Contests: Competitions such as the Publisher’s Clearing House Sweepstakes and the McDonald’s Monopoly Game encourage people to buy the products that are being promoted. Many salespeople are motivated by bonuses, contests, and sales rallies. Sales contests can also be effective ways to generate off-season sales. Organize contests with cash prizes, merchandise, and travel rewards. And never underestimate the power of a contest.

Other types of sales promotion: coupons, punch cards, and free trials. These can be used to reward existing customers for brand loyalty. Some stores reward their customers with coupons or vouchers, while others offer discounts or freebies. Unlike coupons, upsell specials are not common in sales promotions. They give the first-time consumer a cheaper product to try out and then work with the sales department to get them to purchase the more expensive version.

Premiums: Another popular form of sales promotion is the premium. Premiums can be offered for free or for a small shipping and handling charge. Premiums can be part of a package or sales receipt, or can be offered as a part of a cereal box. Premiums are typically meant to stimulate repeat purchases, but they may also be associated with other benefits. If the premium is valuable enough to justify the extra cost, the buyer is likely to buy the product.